Talk to people who are PC fans and they’ll point out that while Apple controls the smartphone market in many respects, the company still only has a small fraction of the global PC market. But as Horace Dediu at Asymco points out, any other PC maker in the world (like Dell, HP or ASUS) would kill to have Apple’s share of the PC market if it meant also getting Apple’s share of the profits. You see, while Apple only owns 5 percent of the world-wide PC market, they make 45 percent of the profit.
As you can see from the chart above, the next largest single-player profit share of the market is Dell, which gets a measly 13 percent. As Dediu explains, “The real problem for the PC vendors is not that they have such low margins — they’ve had low margins for decades. It’s that the volumes which ‘made up for’ low margins are disappearing.”
Those disappearing volumes are largely due to increased sales from smartphones and tablets like the iPad. Speaking of the smartphone market, Dediu says that Apple owns a whopping 72 percent of profits across all mobile phone sales.
[via Apple 2.0]
Apple sells 5% of PCs world-wide, makes 45% of the profit originally appeared on TUAW – The Unofficial Apple Weblog on Wed, 17 Apr 2013 14:30:00 EST. Please see our terms for use of feeds.